Graduated Annual Fixed Tax - Amount of Gross Sales as Basis

April 25, 1979 BIR RULING NO. 021-79 Graduated annual fixed tax amount of gross sales as basis In reply to your letter dated April 6, 1979, please be informed that for buying filling materials from private landowners in Mindoro for which you are issued receipts and subsequently reselling said filling materials to the Ministry of Public Highways, you are a dealer of filling materials. As such dealer, you are subject to the graduated annual fixed tax prescribed in Section 192(2) of the Tax Code of 1977, the initial amount of which is P20.00. Thereafter, the amount of tax will depend upon the amount of gross sales during the preceding calendar year. Your sales derived therefrom are not subject to any percentage tax. Nor your sales of filling materials subject to the withholding of taxes under Presidential Decree No. 1351 as implemented by Revenue Regulations No. 13-78, for the reason that said sales are not among those specified in the Regulations. Moreover, you are subject to income tax as dealer of filling materials. The above ruling is based on your representation and the same may be revoked if, after investigation, it is ascertained that the facts are different from those represented.